EACA Monthly Newsletter December 2002 - January 2003

EU News

EGTA Requests Legal Clarification on New Forms of Advertising
Political clarification of the legality of new forms of advertising and sponsorship was requested by the European Group of Television Advertising (EGTA). A ?presumption of legality? should be given to advertising unless otherwise directed by the `acquis communautaire`. EGTA also recommends the launch of a pan-European EU-funded benchmarking on new forms of advertising and sponsorship that could serve as a reference for operators as well as for the EU Institutions. For the revision of the Television Without Frontiers Directive (TVWF) EGTA calls on the EC to remove `restrictive shackles` that discriminate against broadcasters. It suggests a European approach that would treat all the media in the same way and would be based on the principles applied to electronic communications. It proposes a market-led regulatory framework relying on industry self-regulation and a balanced content approach as set out in the current TVWF directive.

http://www.egta.com

Audio Visual Council Adopts Resolution on Interactive Media Content
The Audio Visual Council adopted a Resolution on interactive media content stating that to combine cultural diversity and a European market for interactive cultural content the focus should be on frameworks for European networks of professionals, availability and adequacy of financing for the development of creative interactive media content as well as distribution and marketing of European interactive content. The Council invites the Members States (MS) and the EC to collect information and monitor the development of interactive media content production; consider the need for exchanging good practices; consider how interactive content industries could benefit from networking; and take account of the consumer interest, especially the young consumer.

IFSE Announces Plans for New Age Rating System
The Interactive Software Federation of Europe (IFSE) announced plans for a new pan-European system of age ratings and warning symbols for games in Europe. The voluntary system will include five age categories: aged three and over; seven and over; 12 and over; 16 and over, and 18 and over. The age ratings are designed to ensure that children are not exposed to content that might be unsuitable. In addition to the age ratings, a series of six symbols designed to warn parents about specific types of content will be introduced. The symbols highlight content that includes violence, sex, drugs, fear, discrimination, and bad language.
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Greek Presidency Plans
Initial reports of the Greek Government`s plans during its EU six-month Presidency (starting January 2003) have indicated that no particular priority will be given to any of the key dossiers in the consumer protection or commercial communication areas. That said, it is understood that some progress can be expected on the proposed Sales Promotion Regulation.

EP adopts the Patrie Report on the Green Paper on Consumer Protection
The EP Environment and Consumer Affairs Committee adopted the Report by Béatrice Patrie (PSE, France) on the Green Paper on Consumer Protection. The Report supports the EC proposal, opting for a framework directive based on a high level of consumer protection, particularly regarding the products and services aimed at children. Also a blacklist of unfair practices should be attached to the directive and be updated regularly. Consumers should also be allowed to request information on production processes and working conditions. The Report urges the Commission to publish rules for enforcement and cooperation.

EUROCARE Rage
Eurocare, an alliance of several citizens' and lobby groups, published an intemperate attack on social aspect organisations, as the industry-funded Portman Group and the Amsterdam Group. Observing that the organizations ?ought to carry a public health warning?, Eurocare argues that the voluntary advertising codes are `blatantly, consistently and extensively broken, and are targeted at young people'. It also rejects designated driver campaigns such as the `Bob' campaign in Belgium. The violence of the attack shows the increasing concern among the Eurocare membership that the alcoholic beverages industry has become much more successful recently in establishing a constructive and positive dialogue with the EC and national authorities, and in countering attacks from its critics.

.EU Domain Deadline Passes
The EC deadline for proposals to manage the "dot-EU" domain names has now passed. The proposals had to be represented by entities with a non-lucrative goal and be registered in the EU, they must be able to show adequate technical expertise, and properly represent the internet community as a whole.
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ICC Issues Policy Statement on Internet Regulation
The International Chamber of Commerce (ICC) issued a policy statement on the impact of Internet content regulation. Global businesses have expressed their concern that Internet content regulation could stifle international trade, which relies heavily on the use of Internet and e-commerce. Whilst the statement acknowledges the legitimacy of public policy objectives such as protecting the general public, particularly children, from objectionable Internet content, and prohibiting the use of Internet for criminal activity and information that could be prejudicial for global security, the ICC believes such regulations should be kept to a minimum. In its paper, the ICC gives practical recommendations to governments on how to reduce the regulatory overload while increasing the efficiency of measures.

New rules for Electronic Marketing
New EU regulations which have been recently introduced are likely to have a real impact on business. These regulations include rules on e-commerce, spam and privacy directives. Agencies and their clients, are advised to seek formal legal advice from appropriate advisers before conducting any marketing activity that might breach these new rules.

http://www.eaca.be/defaultPMC.asp?s=Rules

EU launches a Sustainable Trade and Innovation Centre
The European Commission (DG Trade), together with the Commonwealth Science Council, the Royal Tropical Institute of the Netherlands and European Partners for the Environment launched a sustainable trade and innovation centre (STIC). It will act as a platform bringing together stakeholders from North and South to create a more co-operative context for sustainable trade and innovation.
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EU Ministers Ban Advertising for Tobacco
Earlier this month, the Health Council reached a political agreement on the draft directive banning most advertising and sponsorship of tobacco products. The proposal will ban tobacco advertising in print, radio and the Internet from July 2005. This new legislation will forbid companies also from sponsoring big sport events such as Formula One. Tobacco companies will still be able to advertise further in cinemas and on bilboards. Because the Council agreed with the European Parliament's amendements, no second reading is necessary.
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European Court Backs Ban on Misleading Cigarette Labels
The European Court of Justice ruled recently that the ban on misleading labelling of cigarettes was valid. The Court's ruling confirms the validity of the Tobacco Products Directive and comes as another setback to the tobacco producers one week after the adoption by the Council of the Directive on Tobacco advertising.
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EC Advertises Non-Smoking
The second part of the 18 million Euro and three year-long anti-tobacco advertising and PR campaign led by the Commission (DG SANCO) is now under way. Celebrities will help spread the message `Be cool - don't smoke` to young people in the EU via 38 television channels, cinema and radio as well as poster sites. A web site in 11 languages will provide information and links to quit-lines.
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MEPs Oppose Committee that 'goes its own way' on Tobacco Advertising
Mrs Heidi Hautala MEP, rapporteur of the Green/ EFA group in the legal affairs Committee, urged MEPs to reject "attempts to undermine the tobacco advertising ban" following a report from the Legal Affairs Committee. Instead, an amendment to the text which "would clarify the right of Member States to ban indirect advertising by national law in order to protect public health was proposed. A modest Directive will at least allow for the Commission to represent the EU in the WHO framework in negotiations aiming at restricting tobacco advertising globally".
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EACA and Members News

Alcohol Advertising

RU
Russian Breweries Adopt Code of Honour
Several Russian breweries have adopted a brewers? `code of honour` that imposes restrictions on beer advertising. The companies guarantee that in TV ads viewers will no longer see more than one litre of beer per character or beer being consumed. Brewers are also dropping the images of youth and `youth culture elements` in their ads. It is believed that the measure will affect the majority of current beer advertising in Russia

UK
New Alcohol Code Adopted
The office of Fair Trading has given its approval to the recently published Code on marketing standards of alcoholic drinks of the Portman Group. The code now also covers sampling, sponsorship and online marketing, and will become effective as from 1 March 2003.

Advertising & Children

Italy
Communications Minister Announces New Code of Conduct on TV and Minors
Following over six months of discussions, the Italian Minister for Communications, Maurizio Gasparri, announced the adoption of a new self-regulatory code of conduct on ?TV and Minors?. Its main objective is the protection of minors from violent and other inappropriate content in TV programming, but it also includes provisions on advertising targeted at children. Broadcasters undertake to control the content of advertising, trailers and programme promotions, to ensure it does not harm minors in any way. For this purpose, the Italian advertising industry?s Self-regulatory Advertising Code is to be considered as an integral part of the code on TV and Minors. The enforcement of the code of conduct will be overseen by a Control Committee, composed of 15 members, 5 of which represent the broadcasters, 5 the public authorities and 5 viewers interests.

www.aeforum.org

Netherlands
Health Council Calls for Restrictions on Food Advertising to Children to Fight Obesity
The Dutch National Health Council published a report, ?Health and Behaviour?, calling for public health action against obesity. The report makes a number of recommendations to the Government like: launching of public information campaigns on health and behaviour, regulation of advertising of unhealthy foods, particularly aimed at children and banning advertising of foods high in sugar and fat during children?s TV programmes. The Dutch Minister of Health, Mr Ross-van-Dorp, announced that the Government is also launching a series of initiatives to combat rising obesity levels in the Netherlands. In addition, the Minister stated that he intends to work closely with the food industry, in order to improve the nutritional qualities of productsand to discuss the issue of advertising aimed at children.

UK
Kids' TV Gets Green Light to Plug Junk Food
The British government has no intention of banning ads for ?junk food? during child-oriented programming, a minister told food manufacturers. Tessa Jowell ? secretary of state for culture, media and sport ? told a meeting of delegates from the food industry that no such regulation is planned. Britain's multi-million pound food industry has received a private government guarantee that there will be no ban on food commercials shown during children's TV time, despite soaring rates of obesity among the young.

http://media.guardian.co.uk/advertising/story/0,7492,842536,00.html

Survey of Adults? Attitudes
The number of adult consumers who think that advertising aimed at children should be restricted has dropped in two years by just over eleven per cent. The number of adult consumers who think it should be banned completely remains the same. The survey, which was conducted by the hartered Institute of Marketing, looks into consumer attitudes to advertising aimed at children. It also shows that thirty-nine per cent of adult consumers in the UK believe advertising to be the biggest influence on children and thirty-four per cent believe that friends are the most influential factor. Only fourteen per cent believe parents to have the strongest influence, and eight per cent believe school to be the most effective factor.

Food & Health

US
FTC Chairman Refuses to Carry Misleading Diet Advertising
The chairman of the Federal Trade Commission (FTC) is encouraging cable channels, newspapers and magazines to refuse to carry misleading diet and health advertising - and to refer to the possibility of legal action if they do not. In a workshop on misleading diet ads, the FTC enforced federal false advertising rules and responds to consumer complaints involving allegedly deceptive televised "infomercials" and other direct-response advertising. Since 1990, the agency has filed 93 court cases challenging weight-loss claims

Pharmaceutical Advertising

US
Congress Criticises Drugs Industry for Misleading Advertising
A report issued by the US Congress mentioned that some companies have disseminated misleading advertisements for prescription drugs, even after being cited for violations. Congressional investigators, from the independent General Accounting Office said that drug advertising seemed to produce a major increase in the use of prescription drugs. The study estimated that at least 8.5 million Americans each year request and receive prescriptions for specific drugs after seeing or hearing advertisements for those products. The report rejected a claim by critics of the pharmaceutical industry that drug companies spent more on advertising than on research and development.

http://bmj.com/cgi/content/full/325/7377/1379/a

Self-Regulation

UK
Postcomm Support for ASA/CAP
In its document ?Licences under the Postal Services Act: standard conditions?, published earlier this month, the UK`s Postal Services Commission (?Postcomm?) gave strong support to the ASA/CAP self-regulatory system. Postcomm does not believe it would be appropriate to introduce a licence condition for other operators so to co-operate. However, Postcomm recognises the importance of maintaining standards and consumer confidence in direct marketing and acknowledges the ASA/CAP`s role in bringing that about; it therefore encourages operators to co-operate within the ASA/CAP.
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http://www.psc.gov.uk/

Comms Bill Published
Advertising and media groups welcomed the publication of the Government?s Communications Bill. The proposals will allow the extension of advertising self-regulation into broadcast media, and empowers Ofcom, a new regulator, to extend and promote self-regulation as a `general duty`, in a phrase that echoes UK advertisers` concerns about the Government?s perception of the role of advertising in the independent media

Other News

UK
Agency Associations Agree to Form Federation
The IPA, the PRCA and MCCA agreed to establish the Communications Agency Federation (CAF) with immediate effect. The Federation will provide a forum in which the associations can exchange views, co-ordinate their work and manage joint projects. The decision to establish the Federation follows consideration of a report by trade association consultant Mark Boleat, who had been commissioned by the associations to review the trade association structure for communications agencies. Among the specific issues the Federation should be involved in are the agency/client relationship, European representation and the growing threat to freedom to advertise.

www.ipa.co.uk

IPA sets up New Policy Group on Sponsorship Issues
IPA's set up a new policy group to tackle issues surrounding sponsorship in the marketing communications industry. The new IPA Sponsorship Policy Group has 11 members and is already devising its programme for the coming 12 months, which will focus on raising the awareness within the industry, developing a code of best practice for the IPA, improving the accountability of the discipline and measurement in the market place and training. Initial discussions have also been held with the advertiser trade body, ISBA, to explore opportunities for joint activity, to improve overall knowledge and promote best practice.

www.ipa.co.uk

US
Media Ownership: Consumers and Agencies Unite
The American Agencies Association, the AAAA, was joined by consumer groups in protesting against plans by the Federal Communications Commission (FCC) to relax existing curbs on any media owner becoming dominant within a local area. The FCC also plans to lift the barrier on cable or satellite operators assuming control of a rival serving the same locality. Media buyers have been complaining that the consolidation will place too much negotiating power in the hands of the media.